From Roads to Real Estate: The Impact of Infrastructure in Hung Yen

Savvy investors understand the fundamental link between succinct infrastructure and real estate development. This article will explore infrastructure development in Viet Nam and the fundamental role it plays in the country’s economic momentum. The article will zoom in on Hung Yen and explore how infrastructure development is driving residential demand in the province. By exploring Hung Yen’s latest infrastructure projects like Ring Road 4 and the expansion of Noi Bai International Airport, this article will highlight how infrastructure development supports economic growth and bolsters the appeal of real estate in Hung Yen.

Infrastructure Investment in Vietnam

In 2020, Viet Nam spent approximately 6% of its GDP on infrastructure, which includes investment in roads, railways, airports, seaports, and other infrastructure projects aimed at boosting economic development. This figure only accounts for government spending and does not include private-sector investment. Infrastructure development is essential to Viet Nam’s strategy of attracting foreign direct investment (FDI) and maintaining its economic growth.

Hung Yen Overview and Infrastructure

Hung Yen is a northern province in the Red River Delta in Viet Nam. It has a population of approximately 1.2 million, and gross regional domestic product (GRDP) growth in 2022 was 13.4%. Given its proximity to Ha Noi, available land banks, and industrial potential, the government is investing in infrastructure in Hung Yen

According to Savills recent Spotlight Hung Yen publication, by 2025, 106 transportation projects in Hung Yen will receive a total investment of VND 14 trillion. Significant projects include Ring Road 4 and the expansion of Noi Bai International Airport. Other major infrastructure projects include upgrading the Ha Noi - Hung Yen interprovincial route and building a road connecting the Ha Noi - Hai Phong Highway to the Cau Gie - Ninh Binh Highway. Infrastructure improvements in Hung Yen will continue to present opportunities for investors in the province. This will ultimately support economic development in Hung Yen Province.

Ring Road 4

Ring Road 4 is a major infrastructure project that will connect Hung Yen with neighbouring provinces, including Ha Noi and Bac Ninh. The 113 km road will reduce traffic congestion significantly and boost interprovincial connectivity, which will facilitate trade in the region.

The National Assembly passed a resolution to spend VND 85.8 trillion (US$3.67 billion) on Ring Road 4. It will run for 20 km in Hung Yen across four districts, including Van Giang, Khoai Chau, Yen My, and Van Lam. It will support large-scale developments like Ecopark and is expected to open to traffic in 2027.

Noi Bai International Airport Expansion

Noi Bai International Airport is only 45 minutes from Hung Yen, and by 2025, it will have a new terminal and an expanded terminal. Noi Bai International Airport is the second-busiest airport in Viet Nam, and while it was designed to handle 25 million passengers a year, it handled 29 million passengers and 695,000 tons of goods. To accommodate the growing number of passengers, the airport is undergoing expansion. The latest planning data shows that there will be a new Terminal 3, which will increase the airport's capacity by an additional 15 million passengers per year. In addition, Terminal 2 is also undergoing expansion, which will increase its capacity by 5 million passengers per year. The upgrades will improve the airport’s capacity, which will likely attract new investment and employment and increase housing demand.
Other Development Projects in Hung Yen
Aside from Ring Road 4 and the new and expanded terminals at Noi Bai International Airport, other projects in Hung Yen are in the planning, construction, or operation phases. These include:

• Highway 39: This is a 44 km long highway that will connect Hung Yen with the provinces of Bac Giang and Lang Son. The project aims to improve transportation between the provinces and promote economic development.
• Urban Railway System: Metro Line 2A opened in Ha Noi in November 2021, and there are plans to expand the system in Ha Noi and surrounding provinces, including Hung Yen. The urban railway system will reduce traffic congestion and boost interprovincial connectivity. In Ha Noi, the metro lines also deliver a notable positive impact on surrounding real estate prices. Read more about this here.
• Industrial Parks: There are 11 planned industrial parks in Hung Yen; Pho Noi A industrial park is the largest with over 400 ha of leasable land, and it is followed by Thang Long A industrial park with over 250 ha. These parks attract foreign investment and promote economic growth. Industrial development has also boosted demand for accommodation from expats, workers, and investors.
Access Spotlight Hung Yen Publication

Why Does Infrastructure Development Matter?

Infrastructure development plays an important role in supporting residential development and liquidity in Hung Yen. The expansion of highways, airports, and railways, as well as the development of industrial parks, attract foreign direct investment and promote economic growth in the province. As a result, there are greater job opportunities, leading to an increase in population and demand for residential housing. Additionally, improved infrastructure allows for easier transportation and connectivity, which improves access to markets, materials, and services. This, in turn, stimulates economic activity and supports the growth of the local economy. As Hung Yen continues to invest in infrastructure and industrial development, it is expected to see continued growth in residential development and increased liquidity in the real estate market.

Conclusion

In conclusion, infrastructure development is a key focus in Viet Nam in general and Hung Yen in particular. With projects like Ring Road 4 and the new and expanded terminals at Noi Bai International Airport, the province is poised for continued economic expansion. As the population continues to grow, it will be important for the government to continue investing in infrastructure to support the needs of its residents and promote sustainable development.

Those keen on investing in Hung Yen should access the preview of Spotlight Hung Yen for the latest insights and an overview of the property market in Hung Yen Province.